Okay, this is a bit difficult to describe, so bear with me. I've included two pictures to hopefully assist in the description.

For the past few years, I've had small red patches appear on the skin of my upper lip. These patches are slightly raised, enough to pick at them and peel the raised portion off, though this leaves it feeling very irritated. The patches come and go, sometimes completely absent, sometimes appearing in mass. I used to have problems with tinea versicolor, which I appear to have permanently cleared up using a cortisone cream, and thinking this might be a fungal infection as well I've tried using cortisone creams and regular skin creams on it as well, which seems to help heal the skin, but I'm not entirely sure if it's either of the creams, or just the patches going away on their own. Is there any diagnosis that can be made from the pictures I've attached?

These spots appear to be irritated hair follicles. Often these can be precipitated by shaving and irritating the skin. I do not think these are from a fungus.

Typically the best method of treatment is to try to prevent them from forming by using a good shaving cream and keeping your razor sharp. If the areas are red it is OK to use a mild steroid cream like 0.5% hydrocortisone but try not to use this for an extended period of time.

If these get worse or aren't getting better I would suggest you see your doctor for further treatment recommendations.

Really? They seemed to spread out to be hair follicles . . . most of the spots cover a patch of more than one hair, and I almost never shave with a razor, I shave with an electric shaver because I never let the hair get beyond just a little stubble. I should have mentioned this before. Does that still seem like what it is?